Program Description
The Strategic Growth Loan (SGL) program helps North Carolina life science product companies reach specific and meaningful milestones that enable them to obtain further funding from investors and/or commercialize their products. For most applicants, SGL awards of up to $250,000 will be matched by an equal or greater investment from one or more organized angel groups or venture capital firms.
For certain exceptionally well-qualified applicants that have a larger matching investment from a top-tier life science investment group, an SGL award of up to $500,000 will be possible.
Eligibility
In order for a company to be eligible to apply for the SGL, it must meet the minimum criteria below:
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Have significant operating presence in North Carolina. To establish a significant presence, the company must (i) maintain its head office (where its books and records are kept, taxes are paid and senior management is located) in North Carolina as reported to the Secretary of State and/or (ii) conduct significant research, product development, or manufacturing activity in North Carolina.
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Be engaged in life science research, development or manufacturing to develop a product or technology with commercial potential.
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Have achieved a robust technical and commercially promising proof-of-principle of its technology for the intended product or application.
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Have a committed, dedicated management team and a solid business plan.
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Have valid license(s) to the relevant core intellectual property expected to be necessary for the company to commercialize its product or technology.
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Obtain a commitment from an Angel Group or VC for an equity investment or loan at least equal in value to the amount being sought under the SGL. Matching investor(s) must have significant life science investing experience, conduct formal due diligence and be willing to share the outcome of this due diligence during the application process, and have additional funds set aside for future investments in the company.
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Have completed all project(s) funded by any previously-awarded NCBiotech loan(s).
NCBiotech determines compliance with these requirements in its sole discretion on a case-by-case basis.
Application Process
Companies interested in applying for a Strategic Growth Loan should contact NCBiotech's SGL program director listed in the Contact section below to discuss the company, its proposed project, and the application procedures. After this discussion, company representatives may be invited to the Biotechnology Center to make an initial presentation.
Pre-Application: Once the applicant’s eligibility and general fit for the program have been established, the company may be invited to submit a pre-application describing the company’s management, technology, proposed project, budget, and source of matching funds.
Full Application: Upon satisfactory review of the pre-application, the company may be invited to submit a full application. This application will include the company’s complete business plan, project proposal, financial statements, matching investment commitment, and other supporting documentation.
Review and Approval: The investment team will thoroughly review the company’s application and solicit independent, third-party reviewers to help evaluate the technical and commercial merits of the proposal. Competitive applications will be presented to NCBiotech's committee of its board of directors for final review and approval.
Application Deadlines:
| Pre-Application must be submitted no later than: |
And full application must be submitted by: |
For potential review by EIC in: |
|---|---|---|
| November 2, 2022 | December 1, 2022 | March 3, 2023 |
| February 8, 2023 | March 15, 2023 | June 2, 2023 |
| May 19, 2023 | June 21, 2023 | September 8, 2023 |
| August 9, 2023 | September 13, 2023 | December 1, 2023 |
Loan Terms
The Strategic Growth Loan consists of:
- A senior, unsecured loan with favorable terms including:
- Five-year fixed term with a balloon payment at maturity for principal and accrued interest
- Interest rate equal to the current prime rate plus 2%, with a maximum rate of 7%
- A warrant to purchase company stock
Loan Disbursement
Successful applicants will receive the loan funds according to the following schedule:
- 50% of the loan amount at closing
- An additional 40% upon receipt and approval of a mid-term project report
- The final 10% upon receipt and approval of a final project report
Mid-term and final reports include a detailed update of progress against proposed milestones (including supporting documentation) and actual spending versus budget. The Biotechnology Center will actively monitor the company’s progress until the Strategic Growth Loan is repaid in full. Periodic progress reports and occasional site visits will be required.
Type: Loan |
Category: Business Loans
Strategic Growth Loan
Maximum Award: $500,000
Deadline: Quarterly
For questions or more information, contact:
Jen Greenstein, Ph.D.
Director, Investments
Emerging Company Development
919-549-8846
| jen_greenstein@ncbiotech.org